Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking the car by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss of the automobile if the ferry sank in a storm. What do you tell him/her? OA) The Comprehensive coverage would pay. OB) That there would be no coverage as the ferry was not operating solely between Canadian ports. OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils, not Comprehensive. OD)here would be no coverage unless a special Ferry Rider was added.

Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking the car by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the loss of the automobile if the ferry sank in a storm. What do you tell him/her? OA) The Comprehensive coverage would pay. OB) That there would be no coverage as the ferry was not operating solely between Canadian ports. OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils, not Comprehensive. OD)here would be no coverage unless a special Ferry Rider was added.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter20: The Problem Of Adverse Selection Moral Hazard

Section: Chapter Questions

Problem 3MC

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